DOL Announces $4.8M Settlement with Wal-Mart Over Overtime Pay Owed to Misclassified Employees

Yesterday, the federal Department of Labor announced that it had reached a settlement with Wal-Mart Stores, Inc. over the nationwide misclassification of more than 4,500 individuals employed as asset protection coordinators and vision center managers between 2004 and 2007. The settlement includes payments to the affected employees of unpaid overtime over a three-year period, plus an equal amount as liquidated damages. In addition, Wal-Mart will pay the DOL $463,815 in civil penalties because of the repeated nature of the violations. The settlement follows an investigation by the Wage & Hour Division, re-classification of the employees by Wal-Mart in 2007 and negotiations over the past four years. The DOL did not explain how Wal-Mart had misclassified the employee. For instance, it did not explain whether the employees did not exercise independent discretion, were not paid on a salary basis, or lacked sufficient managerial authority.

NOTICE: This summary is designed merely to inform and alert you of recent legal developments. It does not constitute legal advice and does not apply to any particular situation because different facts could lead to different results. Information here can change or be amended without notice. Readers should not act upon this information without legal advice. If you have any questions about anything you have read, you should consult with or retain an employment attorney.